WASHINGTON, D.C. — A major student loan debt relief scam targeting financially strained consumers has been permanently dismantled following legal action by the Federal Trade Commission (FTC). The operators of this fraudulent scheme, collectively associated with Panda Benefit Services and its affiliates, are now banned from the debt relief industry and have been ordered to surrender all their assets to settle allegations of widespread deception and illicit profit-making.
According to the FTC, the defendants exploited vulnerable consumers burdened by student loan debt by falsely promising guaranteed loan forgiveness and reduced payments. They allegedly misled consumers into paying illegal advance fees totaling more than $16.7 million, all while pretending to be affiliated with the U.S. Department of Education. Instead of delivering any relief, these operators diverted the funds for their own gain.
“Consumers looking to pay off their student loan debt should not have to worry about being scammed,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC will continue to hold fraudsters that pocket Americans’ hard-earned money accountable.”
A series of legal rulings has brought an end to the scheme. On May 14, 2025, a federal court issued a stipulated order against Select Student Services and Eduardo Martinez. Earlier, on May 6, 2025, the court entered a default judgment against Public Processing Services, Quick Start Services, and Signature Processing Services. These rulings followed an October 2, 2024, court order that targeted Panda Benefit Services, Pacific Quest Services, and other associated entities, along with their operators Emiliano Salinas, Melissa Salinas, Clarity Support Services, and Christopher Hanson.
The court’s orders permanently ban the defendants from the debt relief and telemarketing industries. Furthermore, the rulings impose strict prohibitions on deceptive practices, including making false claims, misrepresenting services, and impersonating government entities. A monetary judgment of nearly $16.8 million was imposed against some defendants, with the amount partially suspended due to claimed financial limitations. However, if any defendant is found to have misrepresented their financial status, they will be liable to pay the full monetary judgment immediately.
These actions spotlight the FTC’s overarching effort for consumers. With financial scams continuing to prey on America’s most vulnerable populations, the FTC’s aggressive pursuit of justice in this case sends a clear message. Efforts to enforce transparency and accountability in debt relief services will remain a top priority. The Commission’s work underscores its ongoing dedication to shielding consumers from deceptive practices and ensuring a fair marketplace.
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